What Is The Best Way To Get More Accurate Financial Data About My Company?

Updated: January 27, 2025

Maintaining accurate financial information is a top priority for companies across all industries. However, many private companies struggle to obtain timely and accurate financial data and conduct fundamental analysis due to different factors. The most common one is bad reporting by your financial staff. Errors in the balance sheet lead to an inaccurate income statement. And having issues with one or both can have a significant impact on decision-making and financial management.

There are two ways to solve the issue of poor reporting. One is devoting more time to detailed financial research and oversight, and the second one is outsourcing. Both solutions will bring benefits if implemented correctly, but outsourcing does have an edge in this situation.

Improving Your In-House Financial Reporting

Demonstrating your company’s financial performance and health strongly depends on accurate financial analysis and retrieval of important and accurate information. In-house teams may find it challenging to keep up with constant regulatory changes and technological advancements in finance. And investing in new technology may stand in the way of your wealth management plan.

To overcome these challenges, many companies have started using finance-as-a-service. If you are managing your finances on your own, here are a few suggestions that should help you get more accurate financial data about your company.

  • Understand your company’s KPIs (Key Performance Indicators) and include responsibility in the reporting process. Staff members that prepare internal and external financial statements should be responsible for reporting on material changes of your company’s KPIs.
  • Those who issue monthly and annual financial statements should have more oversight. Getting involved in the process ensures accurate reporting and efficiency.
  • A company owner should have complete knowledge about financial reporting and be prepared to challenge any inaccuracies or questionable entries in the annual report. Financial statements shouldn’t lack accuracy at any given moment, and additional oversight lowers the chances of bad reporting.
  • Communicate with your financial department whenever you feel the need to but also ask them to “prove” the numbers on your financial statements.
  • Include a screening process when hiring new financial staff. Many candidates overstate their experience on their resume, so you should know how to evaluate their actual level of expertise.
  • Complete a criminal background check for every new employee. The risk of employee theft is always present, so a clean criminal background is something you should be aiming for. On the other hand, insufficient oversight of your financial department can be counterproductive in this situation.
  • Include employee benefits for those who consistently perform well. A staff member that can consistently deliver an accurate cash flow statement should be recognized as a valuable asset in your company.

Understanding The Downsides of an In-House Accounting and Financing Team

Business leaders that choose to handle their own finances can actually slow down their business development. When doing their due diligence, investors conduct thorough company research and take a deep dive into your balance sheets. Inaccurate financial reports can yield negative results in their investment research, and your company will be left behind due to bad financial reporting. Research reports usually include:

  • Balance Sheets
  • Current Assets and Liabilities
  • Non-Current Assets and Liabilities
  • Financial Position: Book Value
  • Market-to-Book Multiple

Understanding and keeping track of all these can become exhausting at some point. With outsourced finance, you don’t have to worry about any of the items on this list.

Finance as a Service (FaaS)

To grow your business, you need to continually conduct market research and keep track of your financial performance. Bad financial reporting can disrupt all of your plans and drive investors away. That is why many business owners are utilizing outsourced accounting. Having a remote accounting staff that is available on-demand is just one of many benefits that come with outsourcing.

Providers of these services usually offer the following:

Bookkeeping and Back-Office Support

With outsourced finance, you can either replace or assist your in-house staff. Skilled outsourced staff members can help with payroll processing and financial planning but also serve as a valuable knowledge base for your own staff.

Controller Services

Financial controllers are individuals that ensure proper internal controls and maintain a business’s financial health.

Financial Planning and Analysis (FP&A)

Professional staff members provided by your outsourcing partner enable easy financial planning and accurate analysis.

CFO Consulting Services

Company financial data and business plans are handled and executed by skilled staff members.

Benefits of Outsourced Accounting

It is now more than clear that FaaS provides access to better and more accurate financial reporting. By receiving financial information in easy-to-read formats from your outsourcing partners, you can expect to spend significantly less time reviewing financial information which gives you more time for planning and analysis. On top of all that, outsourced accounting completely removes the need for an in-house accounting department that burdens your financial management. Spending more on client retention and generating pipeline is now an option thanks to outsourced solutions like Consero.

One of the biggest advantages of outsourced accounting is the access to advanced tech solutions you would otherwise have to acquire exclusively for your company. Cloud-based solutions like SIMPL provide an easy way to look into and understand your financial position. These functionalities include:

  • Current cash position
  • Accounts receivable & accounts payable balances and details
  • Invoices
  • Interactive monthly financials
  • Custom financial reports
  • Graphical trends for revenue and spending
  • Status of finance team deliverables

Advanced software solutions can deliver accurate reports in far less time than an in-house team would need. All of the required information is available with 24/7 remote access. In terms of operational costs and efficiency, this self-service will always outperform your in-house back office staff.

Conclusion

There are many things you can do to increase the accuracy and quality of your financial reporting, but it always comes down to your staff’s capacity. In-house accounting can often be very slow and provide inaccurate data consistently. One small mistake can cause significant problems in the long term. If business owners aren’t familiar with the reporting process, many errors can get past them. Since constant oversight isn’t an option for a vast majority of business owners, outsourced accounting has become an emerging trend that solves the problem efficiently and cost-effectively.

A reliable outsourcing partner will make sure that you are always aware of your financial health by completely freeing you and your company from the accounting process. Request a free consultation today and find out how FaaS can help your business scale and grow with minimal investment and distractions.

Related Resources

Case Study

CFO finds flexibility in the outsourcing model and keeps pace with business changes in a very seamless, cost-effective manner

Synergis Education Solves Unique Problems with Outsourcing Strategy Synergis Education (Mesa, AZ) is a tech education firm that has been expanding rapidly. With rapid growth, ...
CEO / CFO

Inspiration from the Texas Conference for Women

Recently, Consero’s female colleagues were given the opportunity to attend the Texas Conference for Women. So, we asked them what they experienced at the conference. ...
shutterstock_588230513
Private Equity

5 things a private equity investor wants out of the CFO

The CFO (Chief Financial Officer) is a financial expert responsible for managing the money dealings of a company. For a private equity investor, a CFO ...
Whitepaper

Economic Downturn: Tech & Trends

The Critical Role of Finance as a Service (FaaS) in Today’s Finance and Accounting Marketplace New data underscores the critical role that outsourcing plays in ...
CEO / CFO

Why building an effective F&A department is so difficult

When it comes to organizing and leading any business, it can be easy to point to its strengths in times of growth, but often difficult ...
Back Office Holding Back 3

Is The Financial Data Disconnected At Your Small or Medium-Sized Business?

Ask yourself the following questions. Do you have multiple, disparate systems for Accounting, Expenses, CRM, etc. that don’t share data? Are you using spreadsheets to ...

Finance as a Service

Cutting edge technology, processes, and people in a fully-managed solution to deliver precise financial visibility and improved operational scalability, plus a lower and more predictable cost structure. 

Flex Finance

Keep your existing technology and processes. We can manage the back-office F&A function from end-to-end process, including closing the books. When you need skilled talent, we can supplement your F&A team.

Advisory Services

Expert advice and strategies to help you grow.

• CFO Advisory Services
• FP&A and Reporting
• Technical Accounting & Clean-Up

Consero FaaS: Disrupting the Outdated Traditional F&A Model

Transformation
  • Cash to GAAP conversion
  • Clean-up work
  • Interim oversight & support
  • Accounting software Implementation

Build it Yourself Solution

  • CFO / Interim CFO
  • Consultants / VARs

Consero FaaS Solution

  • CFO / Interim CFO
  • or Consero Interim CFO
  • Consero Setup/Transformation
Ongoing F&A
  • Monthly financials
  • Daily accounting support
  • Management reporting
  • Integrate add-on acquisitions

Build it Yourself Solution

  • CFO
  • Controllers & Accounting Team
  • Enterprise Accounting Applications

Consero FaaS Solution

  • CFO
  • or Consero Fractional CFO
  • Consero FaaS Enterprise F&A Software and Services

New PE Platform Investment F&A Challenges

Founder Owned Company Accounting:
  • Existing accounting done on a cash/hybrid basis
  • Run on SMB accounting software and other disparate applications
  • Inability to produce auditable financials
  • Lack of know-how to develop projections & KPIs
  • No consistency/structure to customer contracts
  • Underqualified staff
  • Non-scalable manual processes
Carve-Out Accounting:
  • Required to move off parent company accounting applications in a timely fashion
  • Have to build an entire F&A team
  • No documented operational policies and procedures
To Optimized Finance & Accounting:
  • Monthly financials available in 5-10 business days
  • Audit and diligence ready support details
  • Integrated enterprise grade accounting software
  • Budget and forecast reporting
  • Business KPIs
  • Efficient & scalable processes for rolling in add-ons